If Quality-Detection Costs Are Very Low

question 167

Multiple Choice

If quality-detection costs are very low,

• A) low quality products will tend to be withdrawn from the market, and the average quality will rise.
• B) low quality products will tend to be withdrawn from the market, but the average quality will fall.
• C) high quality products will tend to be withdrawn from the market, and the average quality will rise.
• D) high quality products will tend to be withdrawn from the market, and the average quality will fall.

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Definitions:

Nonverbal Signals

Communication methods without using words, including facial expressions, body language, gestures, and tone of voice, conveying emotions and intentions.

Effective Listening

The active process of receiving, comprehending, and interpreting spoken messages, crucial for successful communication.

Body Posture

The arrangement of the body and its limbs, often conveying nonverbal cues or physical condition.

Self-disclosure Patterns

The ways in which individuals share personal information, thoughts, and feelings with others, influencing relationships.